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Knowledge Base Article: KB2318

Topic: Content Provider (Vendor) Issues

Title: A 5-Year License Term Spells Success at AudioSparx

Last Reviewed: May 23, 2011

Keywords: five year license agreement, Why five years? Agreement length residual income streams of income, 5 years, 5 year agreement

A 5-Year License Term Spells Success at AudioSparx

Consistent Growth
AudioSparx has been on a consistent growth curve since we began in 1996. We have an exciting and vibrant site, with each artist having their own music page and photo or graphic, so a client can hone in on your tracks and sort your music by Best Selling, Recently Added and several other ways to help them find your very latest and best tracks.

Multiple Long-Term Distribution Deals
Our primary goal is the commercial licensing of your music and audio content, but increasingly we are finding ways to monetize your tracks to provide other streams of residual income, some with perpetual effect. We have been increasing our distribution activity of music and ringtone exports to various commercial music service companies like Muzak and other distribution partners around the world for long-term utilization and sales. Consequently, this is why our licensing relationship with the artists and composers that sell here is structured as a 5-year licensing term; it is the only structure that makes sense in this environment where the content is distributed out to multiple long-term distribution deals.

The Revenue Ramp-Up

Many of our distribution deals may take half a year or more to begin producing streams of income and may grow substantially in popularity in the second, third and subsequent years. So if a composer has a short-term approach to this business, you may never realize the potential marketplace value for your music. And if you pull out after five years, we must at a minimum keep your information active for several years following to be sure you continue to receive any earned residual income that we receive here for you from our distribution partners.

A Focus on Quality
Music licensing is becoming more competitive, and our site often declines to represent those artists whose music is (a) for sale on certain low-ball competing websites, (b) is less than topnotch or of poor recording quality, or (c) music we don’t believe our buyers will license. We want everyone to be successful, and it takes time for our registered clientele of over 260,000 clients to even discover your music. Some buyers may come online only several times a year, while others buy tracks much more often.

A Revenue and Royalty Pipeline
We strive to create residual income for your music that would last five, 10 or 20 years, and some deals (like Muzak) pay nice backend performance royalties too. When you sign up at AudioSparx, we review tracks coming online and often may export a track quickly to one of our partners – so be sure you understand that once you join our site and upload your tracks, your music is out there for our buyers, with text info translated in real time into 54 languages. When you upload a new track, a client may license it that day or we may select that same track and export it immediately in one or more of our distribution deals. Once distributed, the track could be playing in 1000s of retail stores like Nordstrom's, Subway Shops, health and fitness centers, major hotels, etc. and thus it's impossible to issue a recall. Thus, the good news is that these distributions will provide years of streaming income to our composers.

Long-Term Vision Required
For these reasons, we are interested in composers who have a long-term vision, and are not just trying to do a quickie “test drive” at AudioSparx. We are a proven success, with so many ways to highlight your content that our clients’ “Time on Site” continues to increase each quarter. Bring us your best music and we will do our best to feature you and your tracks so your efforts will be rewarded through exposure and, hopefully, some great sales results. We can't emphasize this enough:

- Only upload finished, mastered tracks

- Do NOT upload un-mastered tracks that have excessive silence at the beginning or end

- Do NOT upload demo tracks you plan to remove in the near term
- Do NOT upload music with temporary vocal tracks

For additional insight into some key operational aspects of our business, please take a look at this article which explains what we do for both you and for our clients to earn our keep here at AudioSparx. We strive to maintain a great relationship with our artists, so the more we know about you and the more you know about our site, the better your chances for success in a field that is growing more competitive with each passing day.

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